Old mutual expects drop in profits

Old Mutual group

File: Old Mutual highlights that customers were looking for lower margin risk and investment products.

eNCA

JOHANNESBURG - Much like other financial services groups, Old Mutual is expecting a significant drop in its full-year profit.

The company set aside almost R4-billion to cover COVID-19-related claims.

Old Mutual says claims in the second half of the year were higher because of increased infections and death rates.

READ: COVID-19: Old Mutual reports decline in revenue

Headline earnings per share is set to drop by between 40 and 60-percent in the year to end-December

Old Mutual highlights that it will continue to closely monitor claims for this financial year.

The insurer says it currently has about R1.9-billion in COVID-19-related death claims for this January and February.

Source
eNCA

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